Lambertini, Luca
(2014)
On the Interplay between Resource Extraction and Polluting Emissions in Oligopoly.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 32.
DOI 10.6092/unibo/amsacta/4101.
In: Quaderni - Working Paper DSE
(976).
ISSN 2282-6483.
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Abstract
This paper offers an overview of the literature discussing oligopoly games in which polluti ng emissions are generated by the supply of goods requiring a natural resource as an input. An analytical summary of the main features of the interplay between pollution and resource extraction is then given using a differential game based on the Cournot oligopoly model, in which (i) the bearings on resource preservation of Pigouvian tax rate tailored on emissions are singled out and (ii) the issue of the optimal number of firms in the commons is also addressed.
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